What Is Economic Production Quantity?

Economic Production Lot (EPL) is also called Economic Production Quantity (EPQ). Due to the existence of adjustment time for the production system, there is a question of how much economical it is to produce at one time in the production of replenishing the finished product inventory, which is the economic production batch.

Economic production batch

in
EPL model assumptions:
Correct
Total annual cost = annual maintenance fee + annual replenishment order fee + annual purchase fee
The EPQ value similar to EOQ can also be obtained by using the derivative formula method:
The difference between D in 1-D / P and 2DS is the demand rate

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